Cms Info Systems Ltd. · NSE:CMSINFO
Cms Info Systems — Q4 FY24 Earnings Presentation
30 slides from Cms Info Systems's earnings presentation, May 16, 2024
Slide 1: Exchange filing cover letter for earnings call presentation
CMSINFO/2405/007 May 16, 2024 To BSE Limited National Stock Exchange of India Limited Listing Department, Exchange Plaza, C-1, Block-G, Bandra 1st Floor, PJ Towers, Dalal Street, Kurla Complex, Bandra (East), Fort, Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 543441 Symbol: CMSINFO Sub: Earnings Ca
Slide 2: Earnings Presentation Q4'FY24 and FY24
Earnings Presentation Q4’FY24 and FY24 G R O W T H T H R O U G H T R A N S F O R M A T I O N
Slide 3: CMS: India's leading business services platform for BFSI and Retail
CMS: India’s leading business services platform for BFSI and Retail Logistics Managed Services and Solutions Tech Solutions ATM Cash Management Software and AIoT Managed Services Retail Cash Management Banking Automation ATM-as-a-Service Cash-in-Transit Payment Cards CMS Platform Technology Network
Slide 4: FY24 Financial Summary
FY24 Financial Summary ₹ 2,265 Cr 28.3% 16.5% Revenue EBITDA margin PAT margin (18% growth YoY) (16% EBITDA growth YoY) (23% PAT growth YoY) 69% ₹ 780 Cr+ 25% OCF/EBITDA conversion Cash & Cash Equivalents Dividend payout FY242 (~68% avg. 3 yrs) (Debt Free, AA+ rated) (Recommended, as % of PAT) 1: EB
Slide 5: FY24 Highlights
FY24 Highlights 1 5th consecutive year of 20%+ PAT growth 16.5% PAT margin (+ 60 bps YoY); 27.4% ROCE (post tax) 2 100% public owned company One of 12 unique non-BFSI listed companies in India above ₹ 5k Cr market cap1 3 ₹ 1,850 Cr new order wins Highest-ever; 95% growth YoY 4 39% revenue contributi
Slide 6: Track record of delivering high revenue and earnings growth
Track record of delivering high revenue and earnings growth.. Revenue EBITDA1 PAT1 CAGR 20% 28% 30% 28.8% 28.3% 400 15.9% 16.5% 700 30.0% 2,265 25.7% 14.4% 600 23.3% 350 13.0% 375 641 25.0% 1,915 300 500 551 304 1,590 20.0% 250 400 1,306 408 200 15.0% 229 300 150 304 10.0% 170 200 100 100 5.0% 50 0
Slide 7: Strong annuity and recurring share of business
..due to strong annuity and recurring share of business Revenue 582 627 544 488 501 512 444 453 472 404 370 372 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 Revenue (₹ Cr) 22% 23% 25% PAT1 100 26% 23% 22% 50% 38% 96 99 80 51% 16% 87 92 39% 79 81 60
Slide 8: High cash flow generation with strong capital allocation discipline
High cash flow generation with strong capital allocation discipline Strong cash flow ...reinvesting for …delivering high …increasing generation… growth… RoCEs… dividends 74% 69% 500 75% 250 27.4% 61% 63% 219 450 65% 208 27.0% 23.96 400 24.5% 25.0% 440 200 55% 25.0% 23.9% 19.76 350 407 300 45% 23.0%
Slide 9: Business Highlights
Business Highlights G R O W T H T H R O U G H T R A N S F O R M A T I O N
Slide 10: FY24 Cash Logistics: 11% revenue and 15% EBIT growth
FY24 Cash Logistics: 11% revenue and 15% EBIT margin growth Revenue EBIT # of business points INR Crore 11% 6% 1,24,000 1,37,000 388 99 Q4-FY24 351 93 YoY FY23 FY24 • FY21 to FY23 growth Q4-FY23 Q4-FY24 Q4-FY23 Q4-FY24 driven by ATM growth, market share & compliance 11% • FY24 focus: 15% 1,474 386 1
Slide 11: Fast-growing & underpenetrated organised retail opportunity
Fast-growing & underpenetrated organised retail opportunity Organised FS and Retail 360 Solution Retail Insurance Payment Automation 77k 75k • Secure Automation Healthcare Govt. and Services Utilities • Data & Analytics • 550k+ out of 3 mn • Payment Reconciliation 45k 40k retail touchpoints Manageme
Slide 12: FY24 Managed Services and Tech Solutions results
FY24 Managed Services and Tech Solutions: 35% revenue and 27% EBIT margin growth Revenue1 EBIT1 INR Crore 56% 42% • ₹ 600 Cr new wins in 265 43 the quarter Q4-FY24 170 31 • 25,000+ AIoT sites. Developing end-to-end platform Q4-FY23 Q4-FY24 Q4-FY23 Q4-FY24 35% 27% • ₹ 746 Cr recurring 886 157 service
Slide 13: Integrated solutions approach resulting in highest new order wins
Integrated solutions approach resulting in highest new order wins Industry trends CMS Strategy & Outcome • Banking ATM refresh and branch expansion • Our integrated capabilities and strong cycle (FY23 – FY25) operations led to robust CMS order wins (INR Cr) 1,850 • Several orders placed after extens
Slide 14: CMS platform approach leading to deeper and wider penetration
CMS platform approach leading to deeper and wider penetration Deepening enterprise engagement Gaining wallet share Managed Services & Tech Solutions Number of Large BFSI Accounts Cash (₹ 100 Cr+ Annual Revenue) Bank Banking ATM-as- ALGO ALGO Payment Logistics Automation a-Service Software AIoT Cards
Slide 15: FY25 Outlook
FY25 Outlook G R O W T H T H R O U G H T R A N S F O R M A T I O N
Slide 16: Mid-term growth drivers
Mid-term growth drivers: Formalization, Consumption, Increased Outsourcing and new solutions • 100,000 ATMs yet to be outsourced for Cash Mgmt. Cash Logistics • Growth in organised retail • Currency chest outsourcing Managed • Branch expansion: 20,000+ new ATMs Services • Total outsourcing deals: ~1
Slide 17: FY25 revenue outlook in upper-end of the 2x target range
FY25 revenue outlook to be in the upper-end of the 2x target range Revenue (₹ Cr) 3,000 ~2x 2,500-2,700 2,500 2,265 20% 2,000 1,915 1,590 1,500 1,306 FY27 TAM of ₹ 22,000+ Cr1 1,000 500 0 FY21 FY22 FY23 FY24 FY25 Target FY21-FY24 FY24-FY27 • ATM Cash Logistics • Retail Solutions High growth • Compli
Slide 18: Q&A
Q&A 17 G R O W T H T H R O U G H T R A N S F O R M A T I O N
Slide 19: Annexures
Annexures G R O W T H T H R O U G H T R A N S F O R M A T I O N
Slide 20: Market growth: Higher outsourcing creates a large TAM opportunity
Market growth: Higher outsourcing creates a large TAM opportunity INR Crore 2.6x ₹ 22,000 Cr CAGR** 3,000 BFSI Remote 25% Monitoring 11,620 ATM-as-a- 17% Service ₹ 8,500 Cr 4,600 6,200-6,500 Banking 19% 4,570 Automation 1,650 1,800-2,000 7,900 Cash 2,730 3,500-3,700 19% Logistics FY21 FY27 Total TAM
Slide 21: 3-year track-record: strong growth and margin expansion across businesses
3-year track-record: Delivered strong growth and margin expansion across businesses Cash Logistics Managed Services & Technology Solutions1 17% 29% (₹ Crore) 1,474 Revenue 886 1,326 1,111 658 909 531 410 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBIT (₹ Crore) & EBIT Margin (%) 24% 39% 25.4% 26.2% 17.
Slide 22: Our Playbook: Accelerating growth & market expansion
Our Playbook: Accelerating growth & market expansion Lowest unit economics Establish right-to- Scale & productivity win Integrated offerings Strengthen Strong cashflow Expand Drive innovation Large & complex projects Talent & Tech Core generation TAM Customer engagement World class Invest in Quality
Slide 23: Diverse board; Seasoned leadership
Diverse board; Seasoned leadership Shyamala Gopinath Tapan Ray Krzysztof Jamroz Former Deputy Governor, RBI MD & Group CEO of Gift City Executive Chairman at Roadrunner Experienced Directors Rajiv Kaul Sayali Karanjkar Jimmy Mahtani Executive Vice Chairman, Whole Time Non-Executive Independent Partn
Slide 24: Capital Market Information
Capital Market Information (BSE: CMSINFO | 543441, NSE: CMSINFO) Share Price Movement (Up to 31st March, 2024) 55.00% 35.00% 15.00% -5.00% Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 CMS BSE Sensex BSE Small Cap Share Price Data (As on 31st March, 2024) Shareh
Slide 25: Historical Financials
Historical Financials G R O W T H T H R O U G H T R A N S F O R M A T I O N
Slide 26: Quarterly Consolidated Financial Performance
Quarterly Consolidated Financial Performance Particulars (All figures in INR Mn) Q4-FY24 Q3-FY24 Q-o-Q Q4-FY23 Y-o-Y Operating Income 6,271 5,823 7.7% 5,014 25.1% Expenses 4,716 4,315 9.3% 3,573 32.0% Operating EBITDA 1,554 1,508 3.1% 1,441 7.9% Adj. EBITDA 1,686 1,634 3.1% 1,451 16.2% EBITDA Margin
Slide 27: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (All figures in INR Mn) FY21 FY22 FY23 FY24 Operating Income 13,061 15,897 19,147 22,647 Expenses 10,125 11,900 13,770 16,652 Operating EBITDA 2,936 3,997 5,377 5,995 Adj. EBITDA 3,040 4,080 5,506 6,408 EBITDA Margins (%) 22.48% 25.14% 28.08% Adj.
Slide 28: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet (All figures in INR Mn) FY22 FY23 FY24 (All figures in INR Mn) FY22 FY23 FY24 Assets Equity share capital 1,531 1,544 1,628 Non-current assets Other equity 11,030 14,081 17,840 Property, plant and equipment 3,470 4,697 4,677 Total equity attributable to 12,561 1
Slide 29: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement (All figures in INR Mn) FY22 FY23 FY24 (All figures in INR Mn) FY22 FY23 FY24 Cash flow from operating activities: Cash flow from investing activities Profit before tax 3,014 4,010 4,671 Proceeds from sale of property, plant and Adjustments to reconcile pr
Slide 30: Safe Harbour Statement
Safe Harbour Statement No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current